Date of this Version

6-1-2008

Document Type

Conference Paper

Publication Details

Bertin, W.J. & Prather, L. (2008). The influence of management structure on the performance of fund of funds. Paper presented at the 2008 FMA European Conference, Prague, Czech Republic.

Access the conference website.

2008 HERDC submission. FoR: 1502

© Copyright William J. Bertin & Laurie Prather, 2008

Abstract

A rapidly growing mutual fund category is Fund of Funds (FOFs), which invest in other mutual funds instead of individual securities. This study reports on FOFs’ characteristics and performance relative to traditional equity mutual funds and finds that FOFs compare favourably. In particular, FOFs with identified managers outperform their unidentified counterparts, and FOFs that invest in-family outperform both traditional equity funds and those FOFs investing out-of-family. Finally, replicating FOFs’ holdings can be prohibitively expensive since they commonly hold funds with high minimum initial investments, closed funds and/or funds that are restricted to a particular investor type.

 

This document has been peer reviewed.

 

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